(function() { var didInit = false; function initMunchkin() { if(didInit === false) { didInit = true; Munchkin.init('105-GAR-921'); } } var s = document.createElement('script'); s.type = 'text/javascript'; s.defer = true; s.src = '//munchkin.marketo.net/munchkin.js'; s.onreadystatechange = function() { if (this.readyState == 'complete' || this.readyState == 'loaded') { initMunchkin(); } }; s.onload = initMunchkin; document.getElementsByTagName('head')[0].appendChild(s); })();(function(h,o,t,j,a,r){ h.hj=h.hj||function(){(h.hj.q=h.hj.q||[]).push(arguments)}; h._hjSettings={hjid:1422437,hjsv:6}; a=o.getElementsByTagName('head')[0]; r=o.createElement('script');r.defer=1; r.src=t+h._hjSettings.hjid+j+h._hjSettings.hjsv; a.appendChild(r); })(window,document,'https://static.hotjar.com/c/hotjar-','.js?sv=');

GBP/USD Could Rally If It Surpasses 1.2300

Article background

Aayush Jindal

Key Highlights

  • GBP/USD is attempting a recovery wave above the 1.2150 resistance.
  • A major bearish trend line is forming with resistance near 1.2250 on the 4-hour chart.
  • EUR/USD is struggling to recover above 1.0600 and 1.0620.
  • Gold prices climbed toward $1,855 before the bears appeared.

GBP/USD Technical Analysis

The British started a major decline below the 1.2500 level against the US Dollar. GBP/USD traded below the 1.2350 level to enter a bearish zone.

Looking at the 4-hour chart, the pair settled below the 1.2300 level, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).

It even tested the 1.2035 zone. A low was formed near 1.2037 and the pair recently started a recovery wave. There was a move above the 1.2120 and 1.2150 resistance levels. It even tested the 1.2250 resistance and the 100 simple moving average (red, 4 hours).

However, the pair is now struggling to clear the 1.2250 resistance. The next key resistance is near 1.2300. A close above 1.2300 could start a steady increase.

In the stated case, GBP/USD might rise and recover toward the 1.2400 resistance zone or the 200 simple moving average (green, 4 hours). If not, the pair could start another decline from 1.2250.

Immediate support is near the 1.2150 level. The next key support is seen near the 1.2110 level, below which it could test 1.2035. Any more losses might send the pair toward the 1.2000 level.

Looking at gold, the price recovered above the $1,850 level but it seems like the bulls are struggling to push it further toward $1,880.

Economic Releases

  • US Wholesale Inventories for August 2023 – Forecast -0.1%, versus -0.1% previous.
Great